Michigan Laws 207.1108 – Violation of shipping paper requirements as honest error; relief; coordination for operation of common telephone diversion verification number assignment system
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(1) The department shall provide for relief where a shipment of motor fuel is legitimately diverted from the represented destination state after the shipping paper has been issued by the terminal operator or where the terminal operator failed to cause proper information to be printed on the shipping paper.
(2) The relief is subject to all of the following requirements:
Terms Used In Michigan Laws 207.1108
- Department: means the department of treasury or its designee. See Michigan Laws 207.1002
- Destination state: means a state, Canadian province or territory, or foreign country to which motor fuel is directed for export. See Michigan Laws 207.1002
- Motor fuel: means gasoline, diesel fuel, kerosene, a mixture of gasoline, diesel fuel, or kerosene, or a mixture of gasoline, diesel fuel, or kerosene and any other substance. See Michigan Laws 207.1004
- Person: means and includes an individual, cooperative, partnership, firm, association, limited liability company, limited liability partnership, joint stock company, syndicate, and corporation, both private and municipal, and any receiver, trustee, conservator, or any other officer having jurisdiction and control of property by law or by appointment of a court other than units of government. See Michigan Laws 207.1004
- Tax: means a tax, interest, or penalty levied under this act. See Michigan Laws 207.1006
- Terminal: means a motor fuel storage and distribution facility that meets all of the following requirements:
(i) Is registered as a qualified terminal by the internal revenue service. See Michigan Laws 207.1006Terminal operator: means a person who owns, operates, or otherwise controls a terminal. See Michigan Laws 207.1006 Transporter: means an operator of a railroad or rail car, tank wagon, transport truck, or other fuel transportation vehicle engaged in the business of transporting motor fuel below the terminal rack. See Michigan Laws 207.1006
(a) That the shipper, the transporter, or an agent of either provides notification before the diversion or correction to the department if an intended diversion or correction is to occur.
(b) That a verification number be assigned and manually added to the face of the shipping paper.
(c) That the relief provisions are consistent with the refund provisions of this act.
(3) If a person alleged to be in violation of section 101 to 107 establishes to the department’s satisfaction that the violation was the result of honest error made in the context of a good-faith and reasonable effort to properly account for and report motor fuel shipments and tax, the person shall not be subject to the civil penalties set forth in this act for violating those provisions.
(4) The department may coordinate with other states, Canadian provinces, and the federation of tax administrators for the operation of a common telephonic diversion verification number assignment system.